Hong Kong: HANG SENG INDEX (.HSI) investors remain wary ahead of the upcoming G20 meeting

Hong Kong: HANG SENG INDEX (.HSI) investors remain wary ahead of the upcoming G20 meeting

Hong Kong: HANG SENG INDEX (.HSI) investors remain wary ahead of the upcoming G20 meeting

China shares rose on Thursday morning on hopes for policy support and as U.S. Federal Reserve Chairman Jerome Powell made comments interpreted as a dovish shift, but investors remain wary ahead of the upcoming G20 meeting in Argentina.

At the midday break, the Shanghai Composite index was up 7.26 points, or 0.28 percent, at 2,608.99.

China’s blue-chip CSI300 index was up 0.31 percent, with its financial sector sub-index higher by 0.02 percent, the consumer staples sector up 0.7 percent, the real estate index down 0.77 percent and the healthcare sub-index up 0.99 percent. “Although the A-share market is showing strength, we should in no way view this as meaning that the short-term correction in prices is over,” analysts at China Fortune Securities said in a note, highlighting the importance of a planned meeting this weekend between Chinese President Xi Jinping and U.S. President Donald Trump in Argentina.

The analysts said the ongoing uncertainty in Sino-U.S. trade relations will mean the market will be mainly led by changes in risk appetite in the near future.

U.S. Federal Reserve Chair Jerome Powell said on Wednesday the central bank’s policy rate is now “just below” estimates of a level that neither brakes nor boosts a healthy U.S. economy – comments that many investors read as signaling the Fed’s three-year tightening cycle is drawing to a close.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,578.28.

The projected lower bound is: 25,304.51.

The projected closing price is: 26,441.39.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 80.2236. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.54. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 33 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 15 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 20 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -231.531 at 26,451.029. Volume was 16% below average (neutral) and Bollinger Bands were 43% narrower than normal.

Open High Low Close Volume___
26,904.21126,923.33026,399.81126,451.0291,515,044,864

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 26,215.62 26,156.63 28,734.26
Volatility: 20 28 24
Volume: 1,343,560,960 1,834,636,928 1,972,252,416

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

HANG SENG INDEX is currently 7.9% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 10 periods.

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